Facebook (FB) will report third quarter results this afternoon

Last quarter, Facebook exceeded revenue estimates for the third consecutive quarter as revenue growth accelerated sequentially to 27.6%. Instagram has taken the torch as the driver for growth while the company has gained traction with story advertisements on both Facebook and Instagram.

Wall Street expects revenue to grow 26% this year and 22% next year.

TECHS:

Facebook estimates that more than 2.1 bln people use Facebook, Instagram, WhatsApp, or Messenger every day on average, and more than 2.7 bln people use at least one of its family of services each month.

Facebook's valuation seems to reflect the slowing top-line growth. The $535 bln market cap is equal to ~12x EV/EBITDA, a near market-multiple and a modest premium to Google (GOOG/L), which has more market share.

The options market is pricing in a ~6% move by Friday

RESULTS:

Facebook beats by $0.24, beats on revs

• Reports Q3 (Sep) earnings of $2.12 per share, $0.24 better than the S&P Capital IQ Consensus of $1.88; revenues rose 28.6% year/year to $17.65 bln vs the $17.35 bln S&P Capital IQ Consensus.

• Daily active users (DAUs) -- DAUs were 1.62 billion on average for September 2019, an increase of 9% year-over-year. Monthly active users (MAUs) -- MAUs were 2.45 billion as of September 30, 2019, an increase of 8% year-over-year.

• Co estimates that around 2.2 billion people now use Facebook, Instagram, WhatsApp, or Messenger ("Family" of services) every day on average, and around 2.8 billion people use at least one of our Family of services each month

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